50 CAIIB Practice Questions for BFM, Download the Free PDF

CAIIB Practice Questions for BFM

The Indian Institute of Banking and Finance (IIBF) conducts the Certified Associate of India Institute of Bankers (CAIIB) exam twice a year, once in June and once in December. CAIIB intends to provide advanced knowledge necessary for improved decision-making to individuals already a member of IIBF in risk management, Treasury Management, Credit Management, International Banking, Balance Sheet Management, economic analysis, and so on. In order to prepare you better for the CAIIB exam, here we are with CAIIB Practice Questions for BFM pdf.

Download the Free PDF Here

Candidates can download the 50 Important Practice Questions of the BFM Paper for Free. We have mentioned below the direct link to download the e-book for all aspiring candidates.

How To Download The Free CAIIB Practice questions for BFM?

Step 1: Click on the download link. You will be taken to Oliveboard’s FREE E-Books Page.

Step 2: Register/Login to the Free E-Books Page of Oliveboard (It is 100% free, You just enter your valid email ID and a password to be able to download the CAIIB Practice Questions for BFM pdf.

Step 3: After Logging in, you will be able to download the free e-book by clicking on “click here” as shown in the snap below.

Questions in the CAIIB Practice Questions for BFM Pdf:

Q1. PNCPS are …… 

a. In the nature of capital and qualifies for Tier II capital 

b. Debts and qualify for Tier I capital 

c. Debts and qualifies for Tier II capital 

d. In the nature of capital and qualifies for Tier I capital 

Q2. Revaluation reserves …… 

a. Qualify for Tier I capital but limited to 55% of it 

b. Qualify for Tier II capital but limited to 55% of it 

c. Qualify for Tier I capital but limited to 45% of it 

d. Qualify for Tier II capital but limited to 45% of it 

Q3. The Purchasing Power Parity (PPP) theory is a good predictor of …… 

a. all of the following 

b. the long-run tendencies between changes in the price level and the exchange rate of two countries 

c. interest rate differentials between two countries when there are strong barriers preventing trade  between the two countries 

d. either b or c 

Q4. Risk aggregation in ICAAP implies …… 

a. Sum total of risks measured across various risks 

b. Sum total of risks measured in terms of pillar I guidelines 

c. Sum total of risks measured after accounting for risk diversification 

d. Assessment of bank’s internal capital, capital adequacy assessment and strategy 

Q5. If the U.S. dollar appreciates relative to the British pound, …… 

a. it will take fewer dollars to purchase a pound 

b. it will take more dollars to purchase a pound 

c. it is called a weakening of the dollar 

d. both a & c 

Q6. An arbitrageur in foreign exchange is a person who …… 

a. earns illegal profit by manipulating foreign exchange 

b. causes differences in exchange rates in different geographic markets 

c. simultaneously buy large amounts of a currency in one market and sell it in another market 

d. None of the above 

Q7. A speculator in foreign exchange is a person who …… 

a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date 

b. earns illegal profit by manipulating foreign exchange 

c. causes differences in exchange rates in different geographic markets 

d. None of the above 

Q8. What is Gilts? (i) Securities issued by government or Treasuries, (ii) They do not have any credit Risk 

a. Only (i) 

b. Only (ii) 

c. Either (i) or (ii) 

d. Both (i) and (ii) 

Q9. For calculating cross currency rates, banks in India use the dollar/foreign currency rate quoted in …… 

a. Mumbai 

b. London 

c. New York 

d. any international market 

Q10. The Bond can be …… (i) Zero Coupon Bond, (ii) Floating Rate Bond, (iii) Deep Discount Bond 

a. Only (i) and (ii) 

b. Only (i) and (iii) 

c. Only (ii) and (iii) 

d. (i), (ii), and (iii)